Real estate investors need property DC valuation because District Collector valuation is a policy used to calculate Capital Value Tax (CVT) and stamp duty for immovable properties.
It is a fact that several people have started to invest in real estate because of the instability in the bond and stock markets. Moreover, real estate is a stable and high-potential market that offers high ROI even in the presence of strict property policies.
What does the DC rate stand for?
DC rate stands for the District Collector rate, which is used by the government to collect the taxes and stamp duties applied on a specific property in real estate. Therefore, the DC rate list has a crucial role in DC valuation. You can also view the DC rate list in Lahore and Faisalabad easily.
How to evaluate property value in Pakistan?
How do you calculate DC value? You can easily calculate the DC value of property through the information of district, tehsil, city/town, revenue circle, floor, and property area. Therefore, the valuation of immovable properties has been easier for every user.
The DC valuation of real estate properties allows you to calculate the CVT and stamp duty. The stamp is applied to the value of a property in accordance with the Stamp Act of 1899. The property DC valuation depends upon various factors, such as property type and location.
Currently, the provincial governments apply stamp duty on rural properties at 3% of the District Collector rate. Moreover, stamp duty for urban properties is only 1% in accordance with the latest DC rates, which are always summed up during mutation.
E Stamp DC Valuation in Punjab and Sindh
DC valuation in Punjab and Sindh has been easy with the introduction of an e-stamp. The governments of Sindh and Punjab have enabled users to search out the DC rate in Punjab and Sindh for properties in specific areas.
You can use an e-stamp to calculate the DC value of property in Karachi and Lahore. The e-stamp system has made the calculation of land valuation in Punjab and Sindh very easy for customers.
Property Valuation Certificate Pakistan
The government of Pakistan also issues the certification to the users after the valuation of properties in the different provinces. The certification of property evaluation in Punjab and Sindh can be acquired from the provincial governments of Lahore and Karachi.
The certificate for property valuation in Pakistan can easily be received by the relevant authorities. This certification ensures that your real estate property is evaluated properly to give the actual stats of the land.
Property DC Valuation Systems in Pakistan
There are two property valuation systems: FBR valuation and DC valuation for real estate properties. Pakistan’s government has introduced FBR valuation rates to prevent the challenges of illegal property transactions.
The difference between the market and DC rate urged the federal government to bring the FBR property valuation system. There is always a different between the FBR value and the market value of the property. You must remember that the government established these systems to calculate property taxes like FBR property tax.
The government collects four types of taxes on real estate properties during property DC valuation. Capital Value Tax and stamp duty are payable to the provincial government. Moreover, the federal government collects the capital gain and withholding taxes.
FBR Latest Property Valuation Rates
| DHA Rawalpindi Property Valuation | ||
| Area | Residential DC Rate (Per Kanal) | Commercial DC Rate (Per Marla) |
| Phase 1 | 1,500,000 | 4,400,000 |
| Phase 2 | 1,400,000 | 5,000,000 |
| Phase 2 Extension | 400,000 | 1,300,000 |
| Phase 3 | 600,000 | 1,300,000 |
| Phase 4 | 400,000 | 1,300,000 |
| Phase 5 | 800,000 | 3,800,000 |
| DHA Valley | 250,000 | 575,000 |
Valuation of Immovable Residential and Commercial Property
Difference in FBR and DC Valuation Rates
| DC and FBR Valuation Rates of DHA Lahore | ||
| Area | Residential DC Rate (Per Kanal) | Residential FBR Rate (Per Kanal) |
| Phase 1 | 20,000,000 | 27,000,000 |
| Phase 2 | 20,000,000 | 27,000,000 |
| Phase 3 | 24,000,000 | 30,000,000 |
| Phase 4 | 17,000,000 | 32,000,000 |
| Phase 5 | 22,000,000 | 35,000,000 |
| Phase 6 | 15,000,000 | 28,000,000 |
| Phase 7 | 9,000,000 | 23,000,000 |
| Phase 8 | 11,500,000 | 27,000,000 |
| Phase 9 | 6,000,000 | 17,500,000 |
| Phase 10 | 3,000,000 | 9,000,000 |
Effects of DC Valuation Rate
FBR and DC property rates are not in accordance with the market rates. Therefore, it enables the customers to under-report property transactions. The funds above the FBR or DC rate have no role in the economy, which allows the black market for transactions in the real estate industry.
These property evaluation systems have restricted the real estate market from growing to contribute to the country’s economy. Different industries like steel and cement are also connected with the real estate industry to boost the economy.
There is lack of details about the sales of real estate properties. There is always a gap between government prices and market prices. The government has all resources to collect the necessary information to create an FBR valuation table.
Final Words
The people can be trapped with the taxes without property DC valuation in Pakistan. Moreover, you will be able to know the actual difference between government and market values for tax relaxation. Makaan Solutions helps you to evaluate your property in Capital Smart City and New City Paradise.
What is Property DC Valuation?
If you want to know about What is Property DC Valuation?, contact Makaan Solutions. Our Sales Executive Officer will provide you with all the latest information. Starting from consultation to choosing the property, and from booking to owning your dream property. For further details, please do not hesitate to contact on the below-given information:
